Blackrock Inc.BLKBUY ON WEAKNESSJun 23, 2016Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
The private equity sector has been hit hard with concerns about software loans. The war and potential for higher inflation have added to investors' concerns. Company-specific, BLK recently halted redemptions on one of its funds, and this caused more angst. We would HOLD. Recent news was not great but sentiment is so low any good news would move the stock up. In addition, market volatility can create opportunities. This is not its first crisis. Unlock Premium - Try 5i Free
Wonderful proxy for the market. Well managed. You can do as well as the market does, but also gather some alpha because the managers are so good.
Private equity and regional banks are in the news, as there have been some defaults. As the economic cycle matures, people are worried that this is going to be a classic credit problem. His guess is that it's fairly well covered, but you'll need to do some research.
His model price is $226.98. Current price of $355 is a 35% overvaluation. Would buy this at $228, what he considers its BV. This is often mentioned as one of the systemic risks in this market. There are a lot of redemptions from Sovereign Wealth Funds, etc., and this is where all those assets lie. Be very cautious on this.